June 2007: budgetary surplus of $2.8 billion

There was a budgetary surplus of $2.8 billion in June 2007, up $0.6 billion from the $2.3-billion surplus recorded in June 2006. Budgetary revenues were up $1.5 billion, or 7.6 per cent. All revenue streams, with the exception of customs import duties and sales and excise taxes, were higher. Program expenses increased by $0.9 billion, or 6.4 per cent, largely due to growth in transfers to other levels of government and an increase in departmental operating expenses. Public debt charges were down $47 million.

April to June 2007: budgetary surplus of $6.4 billion

For the first three months of the 2007-08 fiscal year, the budgetary surplus is estimated at $6.4 billion, up $0.5 billion from the $5.9-billion surplus reported in the same period of 2006-07. Budgetary revenues increased $3.9 billion, or 6.9 per cent, driven by gains in income tax revenues and non-tax revenues. Program expenses rose by $3.2 billion, or 7.6 per cent, reflecting an increase in transfer payments and operating expenses of departments and agencies, including National Defence. Public debt charges increased by $0.2 billion, or 2.5 per cent, reflecting an increase in the average effective interest rate on the stock of interest-bearing debt.

Quarterly update of 2007-08 surplus projection: surplus expected to come in higher than Budget 2007 projection of $3 billion

The outlook for 2007-08 has been influenced by a number of developments since the Budget 2007 projection in March.